Reserve Bank of India (RBI), India’s central banking institution, announced the purchase of government securities aggregating Rs 12,000 crore through Open Market Operations (OMOs) on December 4 to ease the liquidity pressure from the banking system.

“Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct OMOs through multi-security auction,” the Reserve Bank said in a notification.

The Indian banking system has been facing liquidity tightness since the second week of November, with banks collectively borrowing over Rs 1-lakh crore on a daily basis.